The impact of the Covid-19 pandemic has almost been experienced by the micro, small and medium enterprises. To survive in a highly competitive global economy, a business needs to utilize technology in digital media to obtain customer information, build customer relationships, analyze customer characteristics and try to attract potential customer. Currently, social media is the most effective way to promote a business. The purpose of this study was to determine the effect of Interactivity, Cost Effectiveness and Compatibility in the use of social media on the financial performance of micro, small and medium enterprises. This type of research is quantitative research. The population in this study were 100 micro, small and medium enterprises owners in Lampung Province who used social media Facebook and Instagram. This study uses a non-probability sampling technique using judgmental sampling. The results of this study indicate that the Interactivity variable has a positive and significant effect on the use of social media with the original sample value (O) of 0,252, the P-Values of 0,030. The Cost Effectiveness variable has a positive and significant effect on the use of social media with the original sampel value (O) of 0,270, the P-Values of 0,046. The Compatibility variable has a positive and significant effect on the use of social media with the original sampel value (O) of 0,456, the P-Values of 0,000. The variable use of social media has a positive and significant effect on financial performance with the original sample value (O) of 0,877, the P-Values of 0,000.

Keywords: Interactivity, Cost Effectiveness, Compatibility, the use of social media, financial performance.